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Plans by the United States to ban Chinese cotton is unlikely to affect Vietnam’s garment and textile industry as a large portion of the materials the Southeast Asian nation imports come from the US.
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Despite the ongoing trade tensions between major economies, and the pandemic, supply chain shifts of Japanese investors are still taking place, mostly in the form of specifically targeted production expansions, with Vietnam being one of the prioritised destinations.
For nearly three decades, Vietnam has made use of official development assistance from foreign partners, thereby accelerating socioeconomic development in areas like infrastructure, science and technology, and human resources. However, strict regulations, high interest rates, and other constraints are some of the reason why ministries are beginning to look for domestic alternatives.
Vietnam’s automobile industry is transforming drastically but it still lacks scenarios to join the global supply chains after the COVID-19 pandemic.
Vietnam’s integration into global value chains will remain just a dream without foreign investment, says Giorgio Aliberti, Ambassador of the Delegation of the European Union to Vietnam, who discussed with VIR’s Hai Van what can be expected in the coming years.
Vietnam’s wood industry has shown signs of recovery in the third quarter of 2020. However, legal complications may arise through illegally-sourced raw materials from foreign suppliers and a lack of uniformity.
Vietnam’s textile, leather, and footwear industries are optimistically looking to profit from the newly effective trade deal between the European Union and Vietnam. However, a decline in orders from the old continent amid the pandemic is expected to lead to stagnating production and business outlooks for the remainder of this year.
With the historic EU-Vietnam Free Trade Agreement now in effect, the doors are open for Vietnamese farmers to push fruit exports to the EU. However, the strong focus on semi-processed fruit, low value products, technical barriers, and the ongoing health crisis are presenting significant hurdles before they can cash in on the agreement.
Bolstered by the growing demand in the EU, Vietnam’s coffee industry has a major opportunity to capture a bigger market share on the European continent.
Mergers and acquisitions (M&A) deals have been vibrant across the board, particularly in retail, consumer goods production, real estate, finance, and agriculture, providing enormous opportunities to consultancy organisations and securities firms.